EV/EBITDA

The current EV/EBITDA of 14.7x means the company’s total enterprise value (market cap plus debt minus cash) is 14.7 times its operating profit (earnings before interest, taxes, depreciation, and amortization).

This multiple falls above the sector median of 13.9x, placing McKesson in the 55th percentile among its peers—meaning it is slightly more expensive than a typical company in the sector. The metric has been decreasing over the last eight quarters, with a year-over-year decline of 5.1% but a quarter-over-quarter increase of 3.1% (from 14.3x to 14.7x). A valuation above the sector median combined with a long-term downward trend (partially reversed in the latest quarter) suggests that while the stock is not cheap versus peers, the compression in the multiple over time may reduce valuation risk if the trend resumes. The recent quarterly uptick introduces uncertainty, making the risk/reward less clear. This mixed picture—above-median level yet declining over the longer term—supports the overall NEUTRAL verdict, as the metric does not point decisively to either an attractive entry point or a clear overvaluation.

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